Developing Rural Economies through Small to Medium Tourism Enterprise: the case of Matatiele and Cedarville in the Eastern Cape, South Africas

Globally, nations depend on small businesses as engines for economic growth. Small to Medium Tourism Enterprises (SMTEs), as part of the small business sector, are increasingly becoming important in terms of job creation, wealth creation and driving economic growth in smaller rural geographic areas. Utilising a mixed research approach, the paper identifies characteristics of SMTEs in Matatiele and Cedarville with the intention of identifying specific ways in which they can be supported to attain their real potential in enabling economic development in rural environment. Purposive sampling method was used to select respondents and self-administered questionnaires utilised to gather relevant data from managers/owners. The results indicate that the rural tourism is dominated by female-owned enterprises primarily offering accommodation services. Most of the enterprises have been in operation for a period of more than five years which points to potential growth as they are able to survive. The results further show that the businesses that participated in the survey intent employing more full-time employees. Furthermore, the results underscore that there is lack of local government support to promote entrepreneurship in the SMTEs sector particularly those that are located in the rural environment. The findings elucidate the ability of SMTEs to greatly reduce the high unemployment in rural economies if appropriate systems are put in place to support these enterprises. These findings have implications for the national, provincial and local government spheres in South Africa in their quest to create job opportunities in rural areas through entrepreneurship and SMTEs in order to provide impetus to the Eastern Cape Province and South African Economy. This pape